May 31 (Reuters) - U.S. equity funds saw outflows for

the first time four weeks in the seven days ended May 29, hit by

rising bond yields and uncertainty over the timing and extent of

Federal Reserve interest rate cuts.

According to LSEG Lipper data, net outflows from U.S. equity

funds totalled $7.6 billion. This came as the yield on the

10-year U.S. Treasury note reached a four-week high, following a

survey that unexpectedly showed an improvement in consumer

confidence in May.

During the week, financials and consumer discretionary

sector funds recorded net outflows of $779.8 million and $379.3

million respectively. At the same time, industrials and tech

sector funds each attracted over $200 million in net inflows.

Meanwhile, U.S. bond funds saw their first weekly net

outflow of the year, driven by persistent inflation concerns and

hawkish central bank rhetoric, which scaled back expectations

for rate cuts to just one by the end of the year - significantly

lower than the up to six anticipated at the start of 2024.

However, U.S. Treasury yields fell on Friday after data

showed U.S. inflation stabilized in April, in line with

expectations, suggesting the Fed's rate cut plans later this

year remained intact.

During the week, U.S. high-yield and inflation-linked bond

funds saw net outflows of $376 million and $254.2 million

respectively, while loan participation funds saw net inflows of

$386 million.

U.S. money market funds also recorded their first net

outflow in six weeks, totalling $2.3 billion.